NEW YORK CITY (dpa-AFX) - Biopharmaceutical company Bristol-Myers Squibb Co. (BMY) reported Thursday a profit for the second quarter that declined from last year, reflecting higher restructuring charges and R&D expenses as well as a revenue decline due to exiting its diabetes business.
However, adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also reaffirmed its adjusted earnings guidance for the full-year 2014.
'During the second quarter we delivered strong financial and operating results, invested in key business development opportunities, and achieved important regulatory milestones for products in HCV and immuno-oncology. These results reflect the promise of our late-stage pipeline, the strong performance of our in-line products and the continued success of our strategy in driving growth for the company,' CEO Lamberto Andreotti said in a statement.
The New York-based drug maker reported net earnings of $333 million or $0.20 per share for the second quarter, lower than $536 million or $0.32 per share in the prior-year quarter.
Results for the latest quarter include net charges of $0.28 per share, while the year-ago quarter included $0.12 per share of the same.
Excluding items, adjusted net earnings for the quarter was $798 million or $0.48 per share, compared to $730 million or $0.44 per share in the year-ago quarter.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
Total worldwide revenues for the quarter declined 4 percent to $3.89 billion from $4.05 billion in the same quarter last year, but topped thirteen Wall Street analysts' consensus estimate of $3.85 billion by a whisker.
Excluding the recently divested diabetes alliance, global revenues grew 7 percent to $3.86 billion. The company completed the sale of its diabetes business in the first quarter to AstraZeneca, receiving $3.3 billion in closing and milestone payments.
U.S. revenues for the quarter decreased 7 percent to $1.90 billion, while it grew 10 percent to $1.90 billion, excluding the divested diabetes alliance. International net sales edged down 1 percent to $2.0 billion from last year.
Net product sales declined to $2.77 billion from $3.02 billion, while alliance and other revenues grew to $1.12 billion from $1.02 billion last year.
Among cancer drugs, sales of Sprycel increased 18 percent to $368 million, sales of Yervoy grew 38 percent to $321 million, and Erbitux sales were up 9 percent at $186 million from last year.
In the virology business, sales of Hepatitis B treatment Baraclude edged down 1 percent to $369 million, and Reyataz sales declined 16 percent to $362 million and Sustiva Franchise sales decreased 12 percent to $361 million from last year.
In the neuroscience business, schizophrenia drug Abilify's sales edged down 1 percent to $555 million. In the Immunoscience business, arthritis drug Orencia saw a 14 percent growth in sales to $404 million. Cardiovascular drug Eliquis generated sales of $171 million.
Gross margin for the quarter improved 190 basis points to 74.5 percent from the same quarter a year ago.
Total expenses for the quarter declined to $3.44 billion from $3.32 billion in the year-ago quarter, including research and development expenses that surged 49 percent to $1.42 billion from last year. The company also made a provision for income taxes of $114 million.
The company noted that the quarter was highlighted by the achievement of important regulatory milestones for key brands in Japan, Europe and the U.S., a new strategic immuno-oncology collaboration agreement with Ono Pharmaceutical Co., Ltd., and the initiation of several research collaborations that will strengthen the company's leadership position in immuno-oncology.
Looking ahead to fiscal 2014, Bristol-Myers Squibb continues to project non-GAAP adjusted earnings guidance to the range of $1.70 to $1.80 per share. Street is currently looking for full-year 2014 earnings of $1.77 per share.
However, the company is adjusting its 2014 GAAP EPS guidance range from $1.70-$1.80 to $1.50-$1.60 as a result of impairment and expected additional restructuring charges.
The guidance assumes current exchange rates and that the company retains exclusivity on Baraclude sales in the U.S. at least through the end of 2014.
The company's earlier guidance had also assumed worldwide revenues between $15.2 billion and $15.8 billion as well as gross margin between 75 and 76 percent.
In Thursday's regular trading session, BMY is currently trading at $49.25, down $0.07 or 0.14% on a volume of 0.82 million shares. In the past 52-week period, the stock has been trading in a range of $41.11 to $57.49.
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